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Investing.com - Wedbush raised its price target on Praxis Precision Medicines Inc . (NASDAQ:PRAX) to $33.00 from $28.00 on Monday, while maintaining an Underperform rating on the stock. According to InvestingPro data, PRAX’s stock has shown significant volatility with a beta of 2.61, while trading below its Fair Value estimate.
The price target increase follows vormatrigine study results showing a 56.3% median reduction in seizures. Despite this activity, Wedbush noted challenges in interpreting the data due to the ongoing nature of the study and the absence of a placebo arm for comparison.
Safety and tolerability assessments were also difficult to evaluate without a placebo group, with Wedbush highlighting that 23% of participants discontinued the study, suggesting no meaningful difference in the adverse event profile.
Wedbush acknowledged that vormatrigine appears to have activity but questioned whether it would be commercially differentiated, stating that controlled studies will be required to determine this. The firm has introduced credit for the program in its estimates, assuming earliest market entry for the focal onset population in fiscal year 2028.
Despite the price target increase, Wedbush maintained its Underperform rating as PRAX shares continue to trade at approximately $48, significantly above the new target, with ongoing questions about vormatrigine’s place in the treatment landscape. Analyst targets for the stock range widely from $28 to $270, reflecting market uncertainty. Get deeper insights and access to 10+ additional ProTips with InvestingPro.
In other recent news, Praxis Precision Medicines has reported significant developments concerning its epilepsy treatments. The company announced positive topline results from its Phase 2 RADIANT study, where the drug vormatrigine demonstrated a 56.3% median reduction in seizure frequency among patients with focal onset seizures. Impressively, approximately 22% of patients experienced complete seizure elimination in the last 28 days of treatment. Additionally, the U.S. Food and Drug Administration granted Breakthrough Therapy Designation to Praxis’s investigational drug relutrigine for pediatric patients with SCN2A and SCN8A developmental and epileptic encephalopathies. This designation is intended to expedite the drug’s development and regulatory review process. The decision was supported by positive data from the Phase 2 EMBOLD study, which showed a 46% reduction in monthly motor seizures. Following these announcements, Guggenheim raised its price target for Praxis to $155.00, maintaining a Buy rating, while H.C. Wainwright reiterated its Buy rating with a $105.00 price target, highlighting the growing recognition of relutrigine’s potential.
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